PCM, Marketing Management Body of Knowledge

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1 PCM, Marketing Management Body of Knowledge

Overview About the AMA PCM Program The American Marketing Association Professional Certified Marketer (AMA PCM ) exams are created using a Body of Knowledge format which outlines the responsibilities

2 Overview About the AMA PCM Program The American Marketing Association Professional Certified Marketer (AMA PCM ) exams are created using a Body of Knowledge format which outlines the responsibilities of and knowledge needed by today s marketing professional in the specific topic. Below is an outline of the eight major content areas, or domains, of the AMA PCM Marketing Management Body of Knowledge with an indication (in parentheses) of the approximate percentage of the test devoted to each domain. Each domain is further organized into topics and learning objectives. The following pages detail the domains, topics and learning objectives, and a list of key terms to study as you prepare for the PCM Marketing Management exam. Recommended Review While accomplished marketing professionals should have a good grasp of the content in this Body of Knowledge, the exam still requires preparation for most candidates. The AMA recommends Marshall and Johnston s 3rd edition Marketing Management textbook as a resource for those preparing for the AMA PCM Marketing Management exam. You can find further details regarding this text and purchase online by clicking here. The AMA does not require that individuals purchase or study from a specific source to be eligible for the exam. Also, the AMA does not guarantee a passing score on the exam for individuals who study from a specific source.

3 Table of Contents DOMAIN 1: MARKETING STRATEGY (10%) Topic 1: Marketing Management Fundamentals Topic 2: Market Planning and Strategy DOMAIN 2: GLOBAL, ETHICAL, AND SUSTAINABLE MARKETING (11%) Topic 1: Issues in Managing Global Marketing Topic 2: Ethics in Marketing Management Topic 3: Sustainability in Marketing Strategy DOMAIN 3: MANAGING INFORMATION FOR MARKETING INSIGHTS (15%) Topic 1: Market Research Fundamentals Topic 2: CRM Topic 3: Data and Marketing Analytics DOMAIN 4: BUYERS AND MARKETS (17%) Topic 1: Consumer Behavior Topic 2: Organizational Buyer Behavior Topic 3: Segmentation, Targeting, and Positioning DOMAIN 5: THE OFFERING PRODUCT AND SERVICE (21%) Topic 1: Product Strategy Topic 2: New Product Development Topic 3: Branding Strategy Topic 4: Service Strategy DOMAIN 6: MANAGE PRICING DECISIONS (7%) Topic 1: Pricing Objectives and Strategies Topic 2: Pricing Tactics Topic 3: Execute the Pricing Strategy DOMAIN 7: DELIVER THE VALUE OFFERING (8%) Topic 1: Channels Topic 2: Physical Distribution Topic 3: Logistics Topic 4: Supply Chain Management DOMAIN 8: COMMUNICATE THE VALUE OFFERING (11%) Topic 1: Promotion Management Basics Topic 2: Digital Marketing Topic 3: Social Media Marketing Topic 4: Legacy Promotional Approaches

4 DOMAIN 1: MARKETING STRATEGY (10%) Topic 1: Marketing Management Fundamentals 1. Identify typical misconceptions about marketing, why they persist, and the resulting challenges for marketing management 2. Define what marketing and marketing management really are and how they contribute to a firm s success 3. Appreciate how marketing has evolved from its early roots to be practiced as it is today 4. Recognize the impact of key change drivers on the future of marketing Marketing management Marketing s stakeholders Societal marketing Sustainability Value Exchange Production orientation Sales orientation Marketing concept Marketing mix (4Ps of marketing) Customer-centric Differentiation Market orientation Customer orientation Relationship orientation One-to-one marketing Mass customization Marketing (Big M) Strategic marketing Market creation Marketing (little m) Tactical marketing Marketing metrics Topic 2: Market Planning and Strategy 1. Examine the concept of value and the elements and role of the value chain 2. Understand the conditions required for successful marketing planning, that marketing planning is focused on the value proposition, and that marketing planning is a dynamic process 3. Identify various types of organizational strategies 4. Conduct a situation analysis 5. Use the framework provided for marketing planning, along with the content in future chapters, to build a marketing plan

5 Benefit Utility Value proposition Customer satisfaction Customer loyalty Customer retention Customer switching Value chain Value-creating activities Marketing planning Marketing plan Market-driven strategic planning Strategic business unit (SBU) Corporate-level strategic plan SBU-level strategic plan Portfolio analysis Boston Consulting Group (BCG) Growth- Share Matrix GE Business Screen Functional-level plans Mission statement Strategic vision Goals Objectives Strategy Generic strategy Competitive strategy Core competencies Distinctive competencies Sustainable competitive advantage Strategic type First-mover advantage Situation analysis SWOT analysis Market penetration strategies Product development strategies Market development strategies Diversification strategies Marketing control DOMAIN 2: GLOBAL, ETHICAL, AND SUSTAINABLE MARKETING (11%) Topic 1: Issues in Managing Global Marketing 1. Identify the various levels in the Global Marketing Experience Curve 2. Learn the essential information components for assessing a global market opportunity 3. Define the key regional market zones and their marketing challenges 4. Describe the strategies for entering new global markets 5. Recognize key factors in creating a global product strategy

6 Developed economies Emerging markets Regional market zones NAFTA MERCOSUR ASEAN Exporting Exporters Distributors Licensing Franchising Strategic Alliances Joint Ventures Direct Foreign Investment Decision Making Authority Degree of Centralization Global product lines Geographic regions Matrix Structure Country-of-origin effect Global marketing themes Global marketing with local content Basket of global advertising themes Local market ad generation Transfer pricing Dumping Gray market Topic 2: Ethics in Marketing Management 1. Understand the importance of ethics in Marketing Management and Strategy 2. Identify the linkage between ethics and the value proposition 3. Describe the impact of ethics on the elements in the marketing mix Marketing ethics Triple Bottom Line Topic 3: Sustainability in Marketing Strategy 1. Recognize the significance of sustainability as part of marketing strategy and the use of the triple bottom line as a metric for evaluating corporate performance 2. Know the concept of triple bottom line as a metric for evaluating corporate performance Key Term Triple Bottom Line

7 DOMAIN 3: MANAGING INFORMATION FOR MARKETING INSIGHTS (15%) Topic 1: Market Research Fundamentals 1. Describe the difference between market information systems and market research systems 2. Identify how critical internal (inside the firm) information is collected and used in making marketing decisions 3. Explain essential external (outside the firm) information collection methods 4. Recognize the value of market research and its role in marketing 5. Define the market research process 6. Illustrate current research technologies and how they are used in market research Market information systems (MIS) Marketing intelligence Demographics Microeconomics Macroeconomics Market research Management research deliverable Research problem Exploratory research Descriptive research Casual research Primary data Secondary data Qualitative research Quantitative research Focus group In-depth interview Surveys Behavioral data Observational data Mechanical observation Open-ended questions Closed-ended questions Census Sample Probability sampling Nonprobability sampling Online database Topic 2: CRM 1. Define CRM and articulate its objectives and capabilities 2. Describe the CRM process cycle 3. Understand the concept of customer touchpoints and why touchpoints are critical in CRM

8 Customer relationship management (CRM) Customer satisfaction Customer loyalty Customer lifetime value (CLV) Return on customer investment (ROCI) Firing a customer Customer touchpoints Data warehouse Data mining Database marketing Organizational learning Formalization Customer mind-set Topic 3: Data and Marketing Analytics 1. Identify and appreciate the types of data used in marketing management decision making 2. Recognize key approaches to marketing analytics 3. Understand the concept of a marketing dashboard and how it improves marketing planning for a firm 4. Explain return on marketing investment (ROMI), including cautions about its use Big data Structured data Unstructured data Semi-structured data Marketing analytics Marketing analyst Descriptive analytics Diagnostic analytics Predictive analytics Prescriptive analytics Sentiment analysis Attribution Content filtering Collaborative filtering Marketing dashboard Return on marketing investment (ROMI) DOMAIN 4: BUYERS AND MARKETS (17%) Topic 1: Consumer Behavior 1. Understand the value of knowing the consumer 2. Consider the role of personal and psychological factors in consumer decision making 3. Appreciate the critical and complex role of cultural, situational, and social factors in a consumer purchase decision 4. Understand the consumer decision-making process

9 Demographics Family life cycle Lifestyle Gender roles Motivation Attitude Multi-attribute model Perception Selective awareness Selective distortion Selective retention Memory Short-term memory Long-term memory Learning Conditioning Cognitive learning Personality Culture Language Cultural values Nonverbal communication Subculture Family Household life cycle (HLC) Social class Aspirational purchases Opinion leaders Market mavens Reference group Desirability Degree of affiliation Primary groups Secondary groups Involvement High-involvement learning Low-involvement learning Real state Preferred state Minimal information search Extensive information search Limited information search Internal information sources External information sources Complete set Awareness set Consideration (evoked) set Emotional choices Attitude-based choices Attribute-based choice Post-purchase dissonance Instrumental performance Symbolic performance Topic 2: Organizational Buyer Behavior 1. Understand the critical role of the buying center and each participant in the B2B process 2. Learn the B2B purchase decision process and different buying situations 3. Comprehend the role of technology in business markets 4. Understand the differences between B2C and B2B markets

10 Business-to-business (B2B) markets Supply chain Product demand Derived demand Acceleration effect Inelastic demand Buying decisions Straight rebuy Out suppliers Modified rebuy New purchase Buying center Users Initiator Influencers Gatekeepers Deciders North American Industrial Classification System (NAICS) Original equipment manufacturer (OEM) End user purchases Capital equipment Materials, repairs, and operational (MRO) Resellers Government Institutions Request for proposal (RFP) Product choice Supplier choice Reliability Personal factors Organizational factor Electronic data interchange (EDI) E-procurement Topic 3: Segmentation, Targeting, and Positioning 1. Explain the criteria for effective segmentation 2. Identify the various approaches to market segmentation 3. Describe the steps in target marketing 4. Define positioning and link it to the use of the marketing mix 5. Use and interpret positioning maps 6. Identify sources of differentiation 7. Avoid potential positioning errors Market segmentation Differentiation Geographic segmentation Demographic segmentation Family life cycle Psychographic segmentation VALS Framework Behavioral segmentation Target marketing Primary target markets Secondary target markets Tertiary target markets Target markets to abandon for future development Undifferentiated target marketing Concentrated target marketing Customized (one-to-one) marketing Positioning Positioning strategy Perceptual map Repositioning

11 DOMAIN 5: THE OFFERING PRODUCT AND SERVICE (21%) Topic 1: Consumer Behavior 1. Understand the essential role of the product experience in marketing 2. Define the characteristics of a product 3. Recognize how product strategies evolve from one product to many products 4. Understand the life of a product and how product strategies change over time Product Stock-keeping unit (SKU) Essential benefit Core product Enhanced product Tangibility Durability Nondurable product Durable product Convenience goods Shopping goods Specialty goods Unsought goods Materials Parts MRO supplies (maintenance, repair, operating) Capital goods Form Feature Conformance Durability Reliability Reparability Style Product line Product mix Product life cycle (PLC) Fads Market penetration Market skimming Topic 2: New Product Development 1. Recognize the importance of new product development to long-term success 2. Understand the new product development process 3. Identify how new products become diffused in a market

12 New-to-the-world product Upgrades or modifications to existing products Additions to existing product lines Reposition existing products Cost reduction Go-to-market mistake Stop-to-market mistake Business case analysis Innovation diffusion process Topic 3: Branding Strategy 1. Recognize the essential elements in a brand 2. Learn the importance of brand equity in product strategy 3. Explain the role of packaging and labeling as critical brand elements 4. Define the responsibility of warranties and service agreements in building consumer confidence Brand Brand strategy Brand identity Brand equity Brand awareness Brand loyalty Perceived quality Brand association Brand assets Stand-alone brands Family branding Category extension National brands Store brand Licensing Co-branding General warranties Specific warranties Topic 4: Service Strategy 1. Understand why service is a key source of potential differentiation 2. Explain the characteristics that set services apart from physical goods 3. Explain the service-profit chain and how it guides marketing management decisions about service 4. Describe the continuum from pure goods to pure services 5. Discuss the elements of service quality and gap analysis 6. Measure service quality through use of SERVQUAL 7. Understand service blueprinting and how it aids marketing managers

13 Service Service economy Service sector Service dominant logic Intangibility Inseparability Variability Perishability Fluctuating demand Service-profit chain Internal marketing Customer-centric Customer mind-set Customer expectations management Customer retention Customer advocacy Search attributes Experience attributes Credence attributes Professional services Customer delight Delightful surprises Service quality Service encounter Moment of truth Gap model Service recovery Service failure Dimensions of service quality Tangibles DOMAIN 6: MANAGE PRICING DECISIONS (7%) Topic 1: Pricing Objectives and Strategies Learning Objective 1. Explore different pricing objectives and related strategies. Cost Leadership Penetration Pricing Market Share Price Skimming Profit Maximization Target ROI Price elasticity of demand Competitor based pricing Price war Stability pricing Value pricing Topic 2: Pricing Tactics 1. Identify pricing tactics 2. Describe approaches to setting the exact price 3. Determine discounts and allowances to offer to channel members

14 Product line pricing (price lining) Price Points Captive pricing (or complementary pricing) Price bundling Reference pricing Prestige pricing Odd pricing Even pricing Psychological pricing One-price strategy Variable pricing Everyday low pricing (EDLP) High/low pricing Auction pricing Reverse auctions Cost-plus pricing Markup on cost Markup on sales price Average cost pricing Target return pricing Discounts Allowances Cash discounts Trade discounts Quantity discounts Seasonal discounts Promotional allowances FOB Pricing Uniform delivered pricing Zone pricing Topic 3: Execute the Pricing Strategy 1. Understand how to execute price changes 2. Understand legal considerations in pricing Just-noticeable difference Price-fixing Price discrimination Deceptive pricing Bait and switch Predatory pricing Fair trade laws Minimum markup laws Loss leader products DOMAIN 7: DELIVER THE VALUE OFFERING (8%) Topic 1: Channels 1. Define a value network and how organizations operate within this approach 2. Identify various types of intermediaries and distribution channels 3. Explain the different types of vertical marketing systems 4. Utilize suitable criteria to select appropriate channel approaches

15 Value network Value co-creation Network organization (virtual organization) Channel of distribution Intermediaries Merchant intermediaries Agent intermediaries Direct channel Indirect channel Facilitating functions Disintermediation Vertical marketing system (VMS) Corporate VMS Vertical integration Contractual VMS Franchise organization Retailer cooperative Wholesaler cooperative Administered VMS Channel captain (channel leader) Partner relationship management (PRM) strategies Channel power Channel conflict Coercive power Reward power Expert power Referent power Legitimate power Push strategy Slotting allowance (shelf fee) Pull strategy Topic 2: Pricing Tactics Learning Objective 1. Understand the impact of intermediary contributions via physical distribution functions, transaction and communication functions, and facilitating functions Physical distribution (logistics) Breaking bulk Accumulating bulk Sorting Creating assortments Reducing transactions Transportation and storage Distribution intensity Intensive distribution Convenience goods Impulse goods Shopping goods Selective distribution Exclusive distribution Topic 3: Logistics Learning Objective 1. Identify the logistics aspects of supply chain management

16 Outbound logistics Inbound logistics Reverse logistics Stock-out Enterprise resource planning (ERP) systems Just-in-time (JIT) inventory control system Materials requirement planning (MRP) Topic 4: Supply Chain Management Learning Objective 1. Understand the role of retailing and e-commerce in delivering the value offering to the customer Supply chain Supply chain management Outsourcing (third-party logistics, 3PL) Exclusive dealing Exclusive territory Tying contract Retailing Electronic commerce (e-commerce) Electronic retailing (e-retailing or e-tailing) Omnichannel retailing Market makers Customer communities DOMAIN 8: COMMUNICATE THE VALUE OFFERING (11%) Topic 1: Promotion Management Basics 1. Understand promotion and identify the elements of promotion mix 2. Explain the hierarchy of effects (AIDA) model and its usefulness to promotion strategy Promotion Promotion mix Digital and social media marketing Advertising sales promotion Public relations (PR) Personal selling Promotional mix strategies Promotional campaign Push strategy Pull strategy Internal marketing AIDA model

17 Topic 2: Digital Marketing Learning Objective 1. Discuss the role and key types of digital marketing in communicating value to customers Digital marketing Paid media Cost per impression Cost per click Owned media Earned media Digital advertising Display ads Banner ads Interstitials Retargeting Search ads Social network ads Native ads Landing page Microsites Blog Search engine optimization (SEO) M-commerce Geolocation marketing Branded mobile apps In-app ads Topic 3: Social Media Marketing Learning Objective 1. Identify the key types of social media and their benefits to marketers in communicating value to customers Social networks Viral marketing Seeding strategy Online brand communities Topic 4: Legacy Promotional Approaches Learning Objective 1. Understand the key types of advertising and the role of the creative agency 2. Identify various approaches to sales promotion and how each might be used 3. Describe the activities and aims of public relations 4. Understand the role of personal selling in marketing communications 5. Learn the process of relationship selling 6. Understand the major job responsibilities of sales management

18 Advertising wearout Advertising response function Institutional advertising Product advertising Pioneering advertising Competitive advertising Comparative advertising Reach Frequency Advertising execution Clutter Trade show Cooperative advertising and promotion Allowance Publicity buzz Event sponsorships Crisis management Personal selling Trade services Missionary sales people Technical selling Key account salespeople Outbound telemarketing Inbound telemarketing Sales presentation Closing the sale Follow-up Outsourcing the sales force Transaction cost analysis (TCA) Sales skill level Motivation Extrinsic rewards Intrinsic rewards Salary Incentives Commission Nonfinancial incentives

19 If you have additional questions after reviewing this document, please contact us. American Marketing Association Professional Certified Marketer Program 130 E. Randolph St., 22nd Floor Chicago, 60601, USA Phone: AMA Website: AMA.org/PCM

AIPMM CPM/CPMM Certification Examination GLOSSARY OF TERMS

Learn. Apply. Lead AIPMM CPM/CPMM Certification Examination Developed by the Association for International Product Marketing and Management (www.aipmm.com), the Certified Product Manager and Certified